A Michigan health care management organization has announced an agreement to acquire Indianapolis-based MDwise. McLaren Health Care says the deal, if approved by state and federal regulators, would more than double the number of individuals it serves. McLaren’s beneficiaries currently total 260,000, while MDwise covers 360,000 individuals.
McLaren says it will "maintain MDwise’s Indiana operations" and customers shouldn’t notice changes to their Hoosier Healthwise and Healthy Indiana Plan services. The 620,000 individuals involved in the resulting company would make McLaren one of the largest provider-sponsored health plans in the region.
McLaren Chief Executive Officer Philip Incarnati says "this expansion allows us to leverage the success and strength of our health plan expertise, and brings significant benefits to the individuals and families served by MDwise. In addition to providing a platform for future growth in Indiana, expanding our health plan operations allows us to create greater economies of scale and new opportunities to share data and best practices, all of which will improve the experience of both members and network providers."
In June, MDwise joined Indianapolis-based Anthem Inc. (NYSE: ANTM) in dropping out of Indiana’s federally-run health insurance marketplace. Earlier this year, it also dropped out of the Indiana Family and Social Services Administration Hoosier Care Connect program, laying off 80 workers.
MDwise CEO Jim Parker, who was hired in April, says the company’s board of directors undertook a lengthy process to identify and select the right buyer. "We are confident McLaren Health Care will be an ideal choice to acquire MDwise. With their strong track record operating a successful health plan in Michigan, they have the expertise needed to assist MDwise to succeed in a rapidly changing managed care market while maintaining a high level of service to our members and provider partners."
You can read more about the deal by clicking here.